Daily Market Report 2/24/16

GOLD

Gold resumed its rally today, moving above the $1,250 resistance level before seeing sellers. Demand continues to be strong and the long term direction is definitely bullish. At 11am PST today, Gold is trading at $1,240 per ounce, up $19 on good volume.

I’m beginning to see a good amount of professional commodity traders changing their Gold/Silver trading strategy. For over four years these traders were selling Gold/Silver on rallies (going short) and covering those sales on dips. Now, these professional commodity traders are buying on dips and taking profits on rallies. This is a more bullish trading strategy, because they prefer to own Gold/Silver, rather than being short. THEY ARE BECOMING BELIEVERS.

SILVER

Silver rallied with Gold this morning, but after reaching a high of $15.61 per ounce, heavy short term profit taking hit. Right now, Gold appears to have a more bullish environment than Silver. At 11am PST today, Silver is up $0.07 per ounce, trading at $15.30 on normal volume.